Oasmia is at a major inflection point as it focuses on its transformation into an R&D-driven, specialty pharma company, with commercially available assets. During 2020, with new management at the helm, much progress was made, including the global partnership deal with Elevar Therapeutics for lead oncology asset Apealea (Cremophor-free paclitaxel), and the implementation of significant cost saving programs. Management has kickstarted 2021 with the in-licensing of Cantrixil (in all indications) from Kazia Therapeutics for $4m upfront, the first of ‘a string of pearls’ strategy to bolster the oncology pipeline. Start of the Phase Ib docetaxel micellar trial in prostate cancer, divestment of the animal health business and optimisation of its platform technologies represent value drivers beyond Apealea. Our revised valuation is SEK2.84bn or SEK6.34/share.
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